Gold waits for Powell speech, De Grey hits eyewatering grades at Hemi

Gold traded in a sideways fashion Thursday as the market awaited a key speech from US Federal Reserve chairman Jerome Powell.

Powell’s address to central bankers Thursday US time in Kansas City, Missouri — standing in for Jackson Hole this year — is set to lay out key Federal Reserve thinking on inflation targeting, which analysts said could be bullish for gold.

“The average inflation targeting framework represents a massive shift in the macroeconomic template that should continue to support inflation-hedge assets,” TD Securities strategists reportedly said, according to Kitco.

Geopolitical tensions are also again feeding bullish gold sentiment.

Reports circulated that China’s military had fired two missiles into the South China Sea after a US spy plane had circled China’s northern coast.

Meanwhile, Australia’s government announced it was bringing forward new laws to curb foreign investment, including from China, if it affects the Australian national interest.

More. thick, high-grade gold at De Grey’s Hemi discovery

De Grey (ASX:DEG) has intercepted high-grade gold at its renowned Hemi discovery, including 19m at 42 grams per tonne from 170m.

Managing director Glenn Jardine, said the result is “the best to date” at Hemi, and had transformed the company’s view of the project’s recently discovered ‘Crow’ intrusion.

“The mineralised footprint at Crow is currently approximately 1,000m by 400m and remains open,” said Jardine. Hemi is located 60km inland from Port Hedland in WA.

‘Plum Pudding’ keeps giving for Middle Island Resources

Explorer Middle Island Resources (ASX:MDI) has reported multiple gold intercepts from its Plum Pudding deposit.

The deposit is 850m south of Middle Island’s 600,000 tonnes per annum gold processing plant within the company’s Sandstone gold project in WA’s central Goldfields.

Capricorn closer to production with mining contractor appointment

Capricorn Metals (ASX:CMM) has moved a step closer to production at its Karlawinda gold project, 60km southeast of Newman in WA, with the appointment of MACA as its mining contractor.

Activity will start at Karlawinda in December, laying the ground for open pit mining in March 2021. MACA’s contract has a five-year term and is worth $400m.

Capricorn is targeting production of 105,000-120,000 ounces per year from the 2.1moz Karlawinda operation at an all-in sustaining cost of $1,140-1,190/oz.